Stability of United Bank Limited's Term Finance Certificates in the Pakistan Stock Exchange

Strategic Insights -

United Bank Limited's Term Finance Certificates (TFC) Tier-I, identified by the symbol UBLTFC5, have maintained stability within the Pakistan Stock Exchange (PSX) framework. These perpetual securities offer a profit rate pegged at the 3-month KIBOR plus 1.55%, reflecting UBL's strategic approach to leveraging market interest rates. The total issue size of these securities stands at Rs. 10.00 billion, with an outstanding principal that mirrors this amount, indicating no principal repayments have occurred since issuance. The securities have a market lot of one with a face value set at Rs. 5,000 and have a significant volume traded, contributing to their consistent presence in the market.

Key Takeaways:

  • The Term Finance Certificates (TFC) Tier-I of United Bank Limited have a market lot of one with a face value set at Rs. 5,000.
  • The securities offer a profit rate pegged at the 3-month KIBOR plus 1.55%, reflecting UBL's strategic approach to leveraging market interest rates.
  • The total issue size of these securities stands at Rs. 10.00 billion, with no principal repayments having occurred since issuance.
  • The next coupon date for these securities is scheduled for July 29, 2025.
  • These securities fall under the category of publicly issued debt securities, making them accessible to a broad range of investors.
  • The volume traded for these securities remains significant, contributing to their consistent presence in the market.
  • The market's response to these securities typically falls within the minor move category, indicating slight fluctuations in price compared to more volatile securities.
  • Investors and market analysts continue to monitor these securities closely, given their impact on UBL's financial strategies and the broader debt securities market within Pakistan.
  • The Pakistan Stock Exchange oversees the listing and trading of these securities, ensuring they adhere to regulatory frameworks.

Statistics:

  • Total issue size of UBL's Term Finance Certificates: Rs. 10.00 billion
  • Face value of each security: Rs. 5,000
  • Market lot of each security: one
  • Profit rate pegged at: 3-month KIBOR plus 1.55%
  • Next coupon date: July 29, 2025
  • Volume traded for these securities: Significant

Sources:

  • Pakistan Stock Exchange (PSX)
  • United Bank Limited (UBL)